Forecast of AT share price in the future with its 2.6b gloves.
|
|
P/E 15 |
P/E 20 |
P/E 25 |
|
Min $120mill net profit annually |
0.45 |
0.60 |
0.75 |
|
Min $70mill net profit annually |
0.30 |
0.45 |
0.50 |
*The annual loss of $35mill from AT main business has also been factored in*
**ATS future share price between 0.30 sen - 0.75 sen**
The estimation of the first $150mil profit before tax, $70-120Mil after tax.
Contract with LKL is 2 years (1 year +1 year).
That contract amount is $200mil for a production of 2.6b gloves annually (2 years).
1.
Despite
the challenge of the big glove companies that are able to produce much
more gloves. Based on the research firm's estimates, glove ASPs could
rise between 10 per cent and 45 per cent quarter-on-quarter (QoQ) in Q4
of 2020 to US$50 to US$100 per 1,000 pieces.
Reference: https://www.nst.com.my/business/2020/09/624171/order-visibility-rubber...
2.
"It's
worrying that rubber output this month will not be enough to match the
growing demand of foreign markets," Rubber Authority of Thailand
Governor Nakorn Tangavirapat said.
Translation:
There is a shortage of rubber gloves worldwide and the demand is high.
Please also keep in mind the material to make rubber glove is also very
very limited. Meaning, the price will increase.
Reference: https://www.theedgemarkets.com/article/asian-rubber-prices-soar-supply...
3,
Many of you must be wondering why so many companies tries to open a rubber glove despite vaccine coming out.
In
careplus 2020 annual report, it is stated that the demand for rubber
glove is 330b globally compared to 2019 which is 188b. Another reason is
also because malaysia has a command of at least 60% of the global
market shares for rubber gloves. translation, people buy rubber gloves
from malaysia.
The demand for rubber glove in malaysia has been increasing for many years despite covid or no covid.
Do
look at the recent news in Russia, the situation over there is also
dire. Look at the nurses. There are not enough hands. There are more
demand of nurses there compared to US. US demand for nurses is at least
300%.
4.
I
can go on writing why rubber glove company will soar later on but I hope
many of you can do your own research and come up with your own theory.
Lets not just solely depend on KYY information.
https://klse.i3investor.com/blogs/rubberglove_y2023/2020-11-22-story-h1536553150-AT_0072_Prediction_value_by_June_2021.jsp
